Mumbai: Indian markets on October 29 soared to over five-week highs with Sensex reclaiming 27,000-mark and Nifty inching closer to 8,100-level on the back of gains in metal and auto shares in line with a buoyant global trend ahead of US Federal Reserve's policy meeting outcome.
Hectic short-coverings ahead of the expiry of domestic derivatives contract tomorrow also boosted the trading sentiments, brokers said, adding that hopes of further economic reforms, rising rate cut expectations and fall in international oil price also played a positive role.
Shares from realty, metal, auto, IT, oil & gas and FMCG sectors were in good demand while some of the shares from pharma and banking segments attracted profit-booking. The BSE 30-share barometer resumed strong but declined to a low of 26,971.16 before bouncing back to settle at over five-week high of 27,098.17, a rise of 217.35 points or 0.81 per cent.
On October 29, Sensex had gained 127.92 points or 0.48 per cent. It has now spurted by 1,196.98 points, or 4.60 per cent, in seven out of last eight sessions. The broad-based 50-issue CNX Nifty of the NSE also flared up by 62.85 points, or 0.78 per cent, to end at 8,090.45. Both indices are at their highest closing peaks since September 22.
Smart rise in Infosys, Tata Motors, RIL, ITC, TCS, Tata Steel, Hindalco, M&M, Maruti Suzuki, Sesa Sterlite, Bajaj Auto and Cipla mainly contributed to Sensex rise. "We expect a highly volatile session on Thursday. First, we shall be seeing participants reacting to the Fed meeting outcome in early trade followed by the F&O expiry," said Jayant Manglik, President-retail distribution, Religare Securities.
All eyes are now set on the US Federal Reserve's meeting which is expected to end its bond-buying programme but reaffirm its willingness to wait before raising interest rates, experts said. In overseas markets, Asian stocks closed strong on rally on Wall Street yesterday on optimisim about earnings and economic data in the US.
